Shearwater swings to profit after 'significant' growth in revenues

Cybersecurity firm Shearwater said on Thursday that it swung to an interim profit after "significant growth" in group-wide revenues.

Shearwater saw revenues soar 255% to £16m in the six months ended 30 September, swinging the group to an underlying earnings before income, tax, depreciation and amortisation profit of £1m - a marked turnaround from the £1.6m loss recorded at the same time a year earlier.

During the half, the AIM-listed group secured a number of significant new contract wins, including multi-year managed service contracts, which underpinned future revenue growth and helped it continue to trade in line with expectations for the full year.

Shearwater also said a "substantial number" of live cross-selling opportunities were generated during the period, 19 of which were converted into contract wins.

Chairman David Williams said: "We have seen good momentum in H1 with the execution of our strategy yielding a materially improved financial performance, resulting in our second consecutive quarter of profits and strong organic revenue growth.

"For the current financial year, we are trading in line with our expectations, with the business approximately two-thirds second-half weighted. With our developing forward visibility and improving cross-selling opportunities, we are well-positioned for long term sustainable growth."

As of 0930 BST, Shearwater shares were up 1.87% at 229.20p.